Crypto trading platform Hounax is under investigation for alleged fraud of HKD 120 million ($15.4 million at current exchange rates). The South China Morning Post writes about this.
According to the publication, Hong Kong police became interested in the company after receiving complaints from 131 people. Commercial Crime Bureau Superintendent Chan Wai-kei told local media that people were encouraged to invest in digital assets through the platform but were unable to withdraw their money.
Earlier, the Securities and Futures Commission of Hong Kong (SFC) included Hounax in the list of suspicious organizations associated with cryptocurrencies.
Data: SFC.
“The company claims to be a cryptocurrency trading platform that is in business partnership with a financial institution and a venture capital firm, when in fact it is not,” the regulator said on its website.
In September, the SFC initiated an investigation into another platform – JPEX. Amid the liquidity crisis, the company suspended all operations in the JPEX Earn service.
Authorities have detained eight suspects involved in the alleged fraud.. Law enforcement officers blocked their accounts for a total of $1.9 million and seized property worth $5.6 million.
The largest crypto scam in Hong Kong: details of the closure of the JPEX exchange
To recap, the Hong Kong Monetary Authority has warned unlicensed crypto companies against describing their services as banking services.. The regulator regards such advertising as misleading to customers..
Previously, local police had made 458 arrests in 314 money laundering cases totaling nearly $60 million, a quarter of which involved digital assets.